Adobe 2011 Annual Report Download - page 31

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is based on the quality and features of products, the level of customization and integration with other publishing system components,
service and price. We believe we can successfully compete based upon the quality and features of the RoboHelp product.
Our Adobe ColdFusion products face competition from major vendors including Microsoft, IBM and Oracle (via its BEA
subsidiary and acquisition of Sun). Our ColdFusion products also compete with several technologies available today at no cost
including the PHP and PERL programming environments that are available for the Apache web server.
OPERATIONS
Marketing and Sales
We market and distribute our products through sales channels, which include distributors, retailers, software developers,
systems integrators, ISVs and VARs, as well as through OEM and hardware bundle customers. We also market and license our
products directly using our sales force and through our own website at www.adobe.com.
We support our end users through local field offices and our worldwide distribution network, which includes locations in
Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Dubai, Finland, France, Germany, India, Ireland,
Italy, Japan, Korea, Mexico, Moldova, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Singapore, South Africa,
Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, the United Arab Emirates, the United Kingdom and the United States.
We also license software with maintenance and support, which includes rights to upgrades, when and if available, support,
updates and enhancements.
The table below lists our significant customer, as a percentage of net revenue for fiscal 2011, 2010 and 2009. As listed, our
significant customer is a distributor who sell products across our various segments.
Ingram Micro
2011
14%
2010
15%
2009
15%
We have multiple non-exclusive, independently negotiated distribution agreements with Ingram Micro and its subsidiaries
covering our arrangements in specified countries and regions. Each of these contracts has an independent duration, is independent
of any other agreement (such as a master distribution agreement) and any termination of one agreement does not affect the status
of any of the other agreements.
Receivables from our significant customer, as a percentage of gross trade receivables for fiscal 2011 and 2010 were as
follows:
Ingram Micro
2011
14%
2010
14%
Order Fulfillment for Physical Distribution
The procurement of the various components of packaged products, including DVDs and printed materials, and the assembly
of packages for retail and other applications products is controlled by our supply chain operations organization. We outsource our
production, inventory and fulfillment activities to third parties in the United States, Europe, Asia and Japan.
To date, we have not experienced significant difficulties in obtaining raw materials for the manufacture of our products or
in the replication of DVDs, printing and assembly of components.
Shippable backlog is comprised of unfulfilled orders, excluding those associated with new product releases, those pending
credit review and those not shipped due to the application of our global inventory policy. We had minimal shippable backlog as
of January 20, 2012. Shippable backlog as of January 21, 2011 was approximately $5.8 million.
Services and Support
We provide professional services, technical support and customer service across all our customer segments, including
enterprises, small/medium businesses, creative professionals, and consumers. Our service and support revenue consists primarily
of consulting fees, software maintenance and support fees and training fees.
Services
We have a global professional services team dedicated to designing, developing and implementing solutions for enterprise
customers in key vertical markets and to transfer technical expertise to our solution partners. The professional services team uses
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